AB InBev (ANH:JSE) is bottoming out above R1,000 per share after making its high a little over R2,000 in Feb 2016. Looking at the European listing, the share has only been this oversold twice before and both times a massive rally followed. 

The downward spiral is as a result of increasing debt, emerging markets falling out of favour, the Rand strengthening and the market pricing in a dividend cut in the full-year results to December. 

ANH’s emerging market exposure will provide it with superior growth over the long-term it should be able to cut its debt by over 50% in the next five years. 

For the first time since listing on the JSE, AB InBev has been added to several indices (All Share, Large Cap, Large and Mid-Cap, Industrial 25, Value, Growth, Shareholder weighted Al Share, Shareholder weighted Industrial 25). Index tracking funds will be buyers as new inflows come. 

Buy AB InBev below R1,100 for a move to R1,500 over the coming months 

The week ahead: 


Other Economic data releases of interest…  

Short Term Ideas 

Long Term Ideas 

Investors looking to take advantage of the stronger Rand and gain offshore exposure with limited downside should contact us as new product launches close soon. Email invest@protrade.co.za